Question

1. Which of the following is a key difference between the economic activities of government and those of private firms? A. Private firms face the constraint of scarcity; government does not. B. Government focuses primarily on equity; private firms focus only on efficiency. C. Private economic activities create externalities; government activities do not. D. Government has the legal right to force people to do things; private firms do not. 2. Which of the following is an activity of government that is not an activity of private firms? A. Enforcing involuntary transactions. B. Paying equitable wages. C. Creating positive externalities. D. Pursuing economic efficiency. 3. The government's ability to coerce can enhance economic efficiency by: A. eliminating income inequality. B. correcting market failures. C. preventing resources from going to their most valued uses. D. restraining self-interest. 4. In a market economy, the government's power to coerce can: A. undermine economic efficiency by increasing private-sector risk. B. improve economic efficiency by directing all resources to their most valued uses. C. reduce private-sector risk and increase economic efficiency. D. cause significant negative externalities. 5. How does government's power to coerce behavior tend to reduce private-sector risk? A. By enforcing contracts and discouraging illegal behavior that threatens private property. B. By guaranteeing that the government will financially cover any losses by private-sector firms. C. By strictly regulating the allocation of most property resources in the economy. D. The coercive power of government only increases private-sector risk.

          1. Which of the following is a key difference between the economic activities of government and those of
private firms?
A. Private firms face the constraint of scarcity; government does not.
B. Government focuses primarily on equity; private firms focus only on efficiency.
C. Private economic activities create externalities; government activities do not.
D. Government has the legal right to force people to do things; private firms do not.
2. Which of the following is an activity of government that is not an activity of private firms?
A. Enforcing involuntary transactions.
B. Paying equitable wages.
C. Creating positive externalities.
D. Pursuing economic efficiency.
3. The government's ability to coerce can enhance economic efficiency by:
A. eliminating income inequality.
B. correcting market failures.
C. preventing resources from going to their most valued uses.
D. restraining self-interest.
4. In a market economy, the government's power to coerce can:
A. undermine economic efficiency by increasing private-sector risk.
B. improve economic efficiency by directing all resources to their most valued uses.
C. reduce private-sector risk and increase economic efficiency.
D. cause significant negative externalities.
5. How does government's power to coerce behavior tend to reduce private-sector risk?
A. By enforcing contracts and discouraging illegal behavior that threatens private property.
B. By guaranteeing that the government will financially cover any losses by private-sector firms.
C. By strictly regulating the allocation of most property resources in the economy.
D. The coercive power of government only increases private-sector risk.

1. Which of the following is a key difference between the economic activities of government and those of
private firms?
A. Private firms face the constraint of scarcity; government does not.
B. Government focuses primarily on equity; private firms focus only on efficiency.
C. Private economic activities create externalities; government activities do not.
D. Government has the legal right to force people to do things; private firms do not.
2. Which of the following is an activity of government that is not an activity of private firms?
A. Enforcing involuntary transactions.
B. Paying equitable wages.
C. Creating positive externalities.
D. Pursuing economic efficiency.
3. The government's ability to coerce can enhance economic efficiency by:
A. eliminating income inequality.
B. correcting market failures.
C. preventing resources from going to their most valued uses.
D. restraining self-interest.
4. In a market economy, the government's power to coerce can:
A. undermine economic efficiency by increasing private-sector risk.
B. improve economic efficiency by directing all resources to their most valued uses.
C. reduce private-sector risk and increase economic efficiency.
D. cause significant negative externalities.
5. How does government's power to coerce behavior tend to reduce private-sector risk?
A. By enforcing contracts and discouraging illegal behavior that threatens private property.
B. By guaranteeing that the government will financially cover any losses by private-sector firms.
C. By strictly regulating the allocation of most property resources in the economy.
D. The coercive power of government only increases private-sector risk.

Added by Gloria S.

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